Break-Even ROAS Calculator
Every business has a different ROAS bar to clear
A "good" ROAS depends entirely on profit margin - a business needs a different minimum ROAS just to break even depending on how much profit each sales dollar actually generates.
Worked example
For a 25% profit margin:
Break-Even ROAS = 1 / 0.25 = 4.0:1 minimum ROAS to break even
| Profit Margin | Break-Even ROAS |
|---|---|
| 10% | 10.0:1 |
| 25% | 4.0:1 |
| 50% | 2.0:1 |
Any ROAS above this break-even threshold represents genuine additional profit from advertising - this is exactly why comparing raw ROAS numbers across businesses with different margins can be misleading without accounting for each business's specific break-even point.